BAKU, Azerbaijan, October 19. The State Oil
Company of Azerbaijan (SOCAR) and Turan Fibron Pipe LLC (TFP) have
signed a Heads of Agreement (HoA) establishing a framework for
cooperation on the local manufacture and supply of advanced
flexible composite pipe solutions in Azerbaijan, Turan Energy Group
told Trend on
October 19.


"The HoA builds on the Memorandum of Understanding signed
between SOCAR and Turan Energy on 24 December 2025 and follows a
successful pilot project implemented earlier this year at the
“Absheronneft” OGPU by Turan Energy and Fibron Pipe, in cooperation
with Azneft. The pilot demonstrated the technology under local
operating conditions and created a technical basis for progressing
toward localisation and industrial-scale application," the company
said.


Reportedly, the planned manufacturing project combines
Azerbaijan's industrial capabilities with the fully bonded
reinforced thermoplastic pipe technology, licence and manufacturing
expertise of Fibron Pipe GesmbH of Austria.. The localisation model
is designed to achieve up to 80% local content, including the use
of locally sourced raw materials, with SOCAR Polymer expected to
play an important role as a local feedstock supplier.


"Fully bonded reinforced thermoplastic pipes offer several
advantages for suitable oil and gas applications.. Their
corrosion-resistant construction and smooth internal bore can
reduce hydraulic resistance and pressure losses, support efficient
flow performance, and reduce corrosion-related maintenance and
replacement. Spoolable construction, fewer field connections and
faster installation can also shorten pipeline replacement and
intervention periods, improving asset uptime and total cost of
ownership. These characteristics can contribute to lower lifecycle
emissions by reducing welding, heavy logistics, repeated
maintenance and replacement activity," the company said.


Habib Hasanov, Chairman of the Supervisory Board, Turan Energy
Group pointed out that this agreement is an important step for
Turan Energy Group as it moves from technology-focused energy
services into advanced manufacturing in Azerbaijan.


"Together with Fibron Pipe, our objective is to localise
cutting-edge composite pipe technology, transfer European know-how
and build strong local engineering and manufacturing capabilities.
We are targeting up to 80% local content, supported by Azerbaijani
raw materials, and we believe this technology can help operators
such as SOCAR improve pipeline efficiency and reliability while
reducing lifecycle costs and the carbon footprint associated with
pipeline construction and maintenance. Just as importantly, we want
to create a new high-technology Made-in-Azerbaijan product for
export across the Caspian region and beyond. Localisation,
technology transfer, decarbonisation and export are the four
pillars of our vision for Turan Fibron Pipe," he noted.







For TFP, the HoA is an important milestone toward establishing a
local advanced-manufacturing platform capable of serving SOCAR and
other operators in Azerbaijan while reducing dependence on imported
steel pipe in suitable applications. The project is expected to
create up to 100 jobs, with approximately one-third of planned
production targeted for export markets.


"Composite and reinforced thermoplastic pipe technologies are
increasingly being deployed and qualified by leading international
oil and gas operators for production flowlines, water injection,
gas and other demanding services. TFP aims to bring this
international technology trend into local production and develop
Azerbaijan as a regional manufacturing and export platform for
advanced composite pipe solutions. Subject to the successful
conclusion of the relevant definitive agreements and required
corporate and regulatory approvals, the parties intend to continue
working together on the commercial, technical and implementation
framework for the project," said the company.


Turan Energy Group is an Azerbaijan-based, technology-oriented
energy services group focused on introducing advanced solutions
across the energy and industrial sectors. The Group is expanding
into local manufacturing through investments that support
technology transfer, localisation and export-oriented industrial
growth.


Turan Fibron Pipe LLC is an Azerbaijan-based industrial company
established to develop local manufacturing of advanced flexible
composite pipe systems using Fibron Pipe`s specialised European
fully bonded RTP technology, with a focus on localisation,
technology transfer, operational efficiency and export
development.